LOG203 Singapore University Inventory Management Answers A grocery store has a monthly demand of 750 chocolate bars. It buys the bars from the distributor

LOG203 Singapore University Inventory Management Answers A grocery store has a monthly demand of 750 chocolate bars. It buys the bars from the

distributor at price of $60 per bar. It calculated that keeping a bar in stock, costs around 67

cents per month. Each time it places an order to the distributor, there is a processing fee of

$160. The distributor offered the store a discounted price of $56 per chocolate bar if it orders

300 bars each time. Solve to determine whether the store should take the offer.

In your answer, compare the two scenarios in tabular form and include the following:

(i) Lot size

(ii) Average inventory

(iii) Number of orders per year

(iv) Purchase cost

(v) Carrying cost

(vi) Ordering cost

(vii) Total Cost

(viii) Savings

(20 marks) LOG203
Inventory Management
Group-based Assignment
July 2019 Presentation
[LOG203]
Group-based Assignment
GROUP-BASED ASSIGNMENT
This assignment is worth 38% of the final mark for LOG203 Inventory Management.
The cut-off date for this assignment is 6 October 2019, 2355hrs.
This is a group-based assignment. You should form a group of 4 members from your seminar
group. Each group is required to upload a single report via your respective seminar group site
in Canvas. Please elect a group leader. The responsibility of the group leader is to upload the
report on behalf of the group.
It is important for each group member to contribute substantially to the final submitted work.
All group members are equally responsible for the entire submitted assignment. If you feel that
the work distribution is inequitable to either yourself or your group mates, please highlight this
to your instructor as soon as possible. Your instructor will then investigate and decide on any
action that needs to be taken. It is not necessary for all group members to be awarded the same
mark.
Note to Students:
You are to include the following particulars in your submission: Course Code, Title of the
GBA, SUSS PI No., Your Name, and Submission Date.
Important Note: Grading of GBA Submission
Marks awarded to your assignment are based on the following guidelines:
1. 80 marks are allocated to the content of your answers:
? The marks awarded to what your answers cover depend on the extent to which they
cover the key points that correctly and comprehensively address each question.
? The key points should be supported by evidence drawn from course materials and,
wherever relevant, from other credible sources.
2. 20 marks are allocated to the presentation of your answers:
Wherever applicable, the marks awarded to how your answers are presented depend on
the extent to which your answers:
? form a sound reasoning by developing those key points in a clear, logical and succinct
manner;
? provide proper and adequate in-text citations and referencing to content drawn from
course materials and other credible sources;
? strictly follow APA formatting and style guidelines1, in particular for:
?
in-text citations and end-of-report references;
1
You can find a short tutorial on the APA formatting and style guidelines here: https://is.gd/mgEOnC .
Additional details (pertaining to tables and figures) can be found here: https://is.gd/O4vDdT .
SINGAPORE UNIVERSITY OF SOCIAL SCIENCES (SUSS)
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[LOG203]
?
Group-based Assignment
the identification of figures and tables;
? use, wherever relevant, the specialised vocabulary and terminology commonly used in
discussions about the topic(s) covered by each question;
? provide a reference or bibliography at the end of the main report;
? include the less relevant details in an Appendix;
? use sentence constructions that are grammatically and syntactically correct;
? are free from spelling mistakes; present the workings, numerical formulations and
results in a logical manner that follows the APA formatting and style guidelines;
? design and present graphs, diagrams and plots that follow the APA formatting and style
guidelines;
? are highly original;
? have proper formatting, which may:
?
include a properly formatted cover page;
?
respect the answer length/word count set out in the assignment guidelines, if any
is prescribed;
?
present answers in paragraphs with proper spacing and page margins;
?
include page numbers and appendices, if necessary.
_________________________________________________________________________
In this assignment, you are assessed on learning outcomes related to knowledge and
understanding as well as on key skills such as:
? Relate the strategies and techniques in inventory management to the work environment.
? Develop the essential knowledge and interpersonal skills to work effectively in a team.
? Demonstrate written proficiency.
___________________________________________________________________________
SINGAPORE UNIVERSITY OF SOCIAL SCIENCES (SUSS)
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[LOG203]
Group-based Assignment
Question 1
(a)
Consider your organisation or one that you are familiar with that holds stock in the
supply chain. Explain the role of stock in this particular organisation. Describe its
importance to this organisation’s business strategy. For context, you should describe
this organisation and the nature of business it is in, as well as its supply chain and
inventory flows. Relate how this organisation controls its stock levels and why it
chooses these particular policies.
(20 marks)
(b)
Stock management is directly impacted by the business trends and business trends are
constantly evolving. Discuss what are the most important trends (at least 3) that are
affecting stock management at the moment. Provide examples.
(10 marks)
Question 2
A grocery store has a monthly demand of 750 chocolate bars. It buys the bars from the
distributor at price of $60 per bar. It calculated that keeping a bar in stock, costs around 67
cents per month. Each time it places an order to the distributor, there is a processing fee of
$160. The distributor offered the store a discounted price of $56 per chocolate bar if it orders
300 bars each time. Solve to determine whether the store should take the offer.
In your answer, compare the two scenarios in tabular form and include the following:
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
(viii)
Lot size
Average inventory
Number of orders per year
Purchase cost
Carrying cost
Ordering cost
Total Cost
Savings
(20 marks)
Question 3
A company which manufactures cooktop stoves needs burners to make the stoves. The
company makes stoves with two burners only. The demand for the stoves 800 units per month.
The supplier for the burner is very unreliable and the lead time for the burners is not fixed.
Based on the previous, it was found that the lead time is normally distributed with mean of 2
months and standard deviation 1 month. The company plans for 90% service level.
(a)
What is the maximum lead time the company will face 90% of the time?
(5 marks)
(b)
What is the mean and standard deviation of lead time demand?
(4 marks)
SINGAPORE UNIVERSITY OF SOCIAL SCIENCES (SUSS)
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[LOG203]
(c)
Group-based Assignment
What is the reorder level and order quantity, if ordering cost is $1000 and holding cost
is $20 per month per burner? Analyse the ordering policy.
(6 marks)
Question 4
(a)
Suppose you are an inventory manager in charge of designing an inventory management
information system. There are lots of information needed to properly manage an
inventory system, but sometimes there can be information overload. Describe what
information are really needed for inventory management.
(10 marks)
(b)
As an inventory manager, you need to forecast demand for products that displays
seasonal demand. Examine whether you need to forecast the random component of the
observed demand.
(5 marks)
—- END OF ASSIGNMENT —-
SINGAPORE UNIVERSITY OF SOCIAL SCIENCES (SUSS)
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